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Saudi Arabia, Kuwait, Qatar and UAE emerged as four of the top ten countries in the world with the highest density ultrawealthy households. The findings appear in BCG’s eleventh annual Global Wealth report titled Shaping a New Tomorrow: How to Capitalize on the Momentum of Change, which was released recently in the Middle East.

According to the study, “ultra-high-net-worth” (UHNW) households, defined as those with more than $100 million in AuM, were most highly concentrated in Saudi Arabia registering 18 per 100,000 households. This was followed by Switzerland (10), Hong Kong (9), Kuwait (8), Austria (8), Norway (7), Qatar (6), Denmark (5), Singapore (5) and the UAE (5).

Qatar, Kuwait and UAE also made it to the top ten list in terms of the highest proportion of millionaire household by market with 8.9 percent, 8.5 percent and 2.6 percent millionaire households, respectively.

Positive trends also emerged for Middle East and Africa overall, as assets under management rose by 8.6 percent to hit $4.5 trillion in 2010 and with expectations to reach $6.7 trillion by 2015.

Dr. Sven-Olaf Vathje, Partner and Managing Director at BCG Middle East said, “The results are not surprising. Given the demographics and overall wealth of these petroleum-rich countries wewould expect a higher proportion of UHNW households than in other parts of the world. Growth in assets under management also reflects the strong fundamentals of the region, driven by continuing strong petroleum prices. Nevertheless, the risk appetite of regional investors remains low, especially when compared to levels seen before the downturn. The asset allocation of GCC high net worth individuals remains overweight in cash and capital-protected products".

Offshore wealth - defined as assets booked in a country where the investor has no legal residence or tax domicile - from the Middle East and Africa reached a total of $1.4 trillion, with the major proportion held in UK, Channel Islands and Dublin ($0.52 trillion) and Switzerland ($0.49 trillion).

Within the region, Dubai sustains its position as most prominent offshore center in the Arab world, with Saudi Arabia, Turkey, Iran, Kuwait and Russia emerging as the most important origins of offshore wealth.

Markus Massi, Partner & Managing Director at BCG Middle East said, “The recent unrest in the region has reversed the trend towards "onshoring" wealth in some countries in the Middle East. For the more stable Gulf States, however, the onshoring trend continues. Some Gulf jurisdictions, for example, Dubai, are now attracting more wealth from other Middle East countries as they act as offshore centers themselves.”

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The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 74 offices in 42 countries.More...

The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 74 offices in 42 countries.

BCG serves the Middle East from Abu Dhabi and Dubai. Our offices there, in conjunction with the BCG office in Casablanca, play a key role in serving clients in the rapidly developing Gulf region as well as Middle East North Africa (MENA). To date BCG has successfully conducted assignments in the Middle East serving clients across a wide range of sectors, including government, financial services, energy, industrial goods, telecommunications, real estate, healthcare and private equity.